Microsoft Excel LibreOffice Calc

Delta Air Lines Inc. (DAL)

Liquidity Analysis

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • Liquidity ratios measure the company's ability to meet its short-term obligations.

    Ratios (Summary)

    Delta Air Lines Inc., liquidity ratios

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    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Current ratio 0.42 0.49 0.52 0.74 0.68
    Quick ratio 0.27 0.35 0.31 0.33 0.38
    Cash ratio 0.14 0.21 0.20 0.20 0.27

    Source: Based on data from Delta Air Lines Inc. Annual Reports

    Ratio Description The company
    Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Delta Air Lines Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
    Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Delta Air Lines Inc.'s quick ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
    Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Delta Air Lines Inc.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

    Current Ratio

    Delta Air Lines Inc., current ratio calculation, comparison to benchmarks

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    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Current assets 7,844  7,451  9,056  12,465  9,651 
    Current liabilities 18,573  15,239  17,526  16,879  14,152 
    Ratio
    Current ratio1 0.42 0.49 0.52 0.74 0.68
    Benchmarks
    Current Ratio, Competitors
    Booking Holdings Inc. 2.58 1.89 2.47 3.82 5.41
    Marriott International Inc. 0.46 0.65 0.43 0.63 0.71
    McDonald's Corp. 1.84 1.40 3.27 1.52 1.59
    Starbucks Corp. 1.25 1.05 1.19 1.37 1.02
    Current Ratio, Sector
    Travel & Leisure 0.86 0.83 0.97 1.03 1.10
    Current Ratio, Industry
    Consumer Services 0.98 1.05 1.12 1.11 1.13

    Source: Based on data from Delta Air Lines Inc. Annual Reports

    2017 Calculations

    1 Current ratio = Current assets ÷ Current liabilities
    = 7,844 ÷ 18,573 = 0.42

    Ratio Description The company
    Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Delta Air Lines Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

    Quick Ratio

    Delta Air Lines Inc., quick ratio calculation, comparison to benchmarks

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    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Cash and cash equivalents 1,814  2,762  1,972  2,088  2,844 
    Short-term investments 825  487  1,465  1,217  959 
    Accounts receivable, net of an allowance for uncollectible accounts 2,377  2,064  2,020  2,297  1,609 
    Total quick assets 5,016  5,313  5,457  5,602  5,412 
    Current liabilities 18,573  15,239  17,526  16,879  14,152 
    Ratio
    Quick ratio1 0.27 0.35 0.31 0.33 0.38
    Benchmarks
    Quick Ratio, Competitors
    Booking Holdings Inc. 2.46 1.81 2.29 3.58 5.27
    Marriott International Inc. 0.40 0.50 0.37 0.39 0.45
    McDonald's Corp. 1.54 0.78 3.05 1.20 1.30
    Starbucks Corp. 0.84 0.67 0.64 0.81 0.71
    Quick Ratio, Sector
    Travel & Leisure 0.68 0.60 0.74 0.65 0.82
    Quick Ratio, Industry
    Consumer Services 0.50 0.54 0.55 0.55 0.58

    Source: Based on data from Delta Air Lines Inc. Annual Reports

    2017 Calculations

    1 Quick ratio = Total quick assets ÷ Current liabilities
    = 5,016 ÷ 18,573 = 0.27

    Ratio Description The company
    Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Delta Air Lines Inc.'s quick ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

    Cash Ratio

    Delta Air Lines Inc., cash ratio calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
    Selected Financial Data (USD $ in millions)
    Cash and cash equivalents 1,814  2,762  1,972  2,088  2,844 
    Short-term investments 825  487  1,465  1,217  959 
    Total cash assets 2,639  3,249  3,437  3,305  3,803 
    Current liabilities 18,573  15,239  17,526  16,879  14,152 
    Ratio
    Cash ratio1 0.14 0.21 0.20 0.20 0.27
    Benchmarks
    Cash Ratio, Competitors
    Booking Holdings Inc. 2.12 1.50 1.84 3.11 4.89
    Marriott International Inc. 0.06 0.17 0.03 0.03 0.05
    McDonald's Corp. 0.85 0.35 2.60 0.76 0.88
    Starbucks Corp. 0.64 0.50 0.44 0.61 0.60
    Cash Ratio, Sector
    Travel & Leisure 0.44 0.38 0.54 0.43 0.62
    Cash Ratio, Industry
    Consumer Services 0.28 0.32 0.32 0.30 0.31

    Source: Based on data from Delta Air Lines Inc. Annual Reports

    2017 Calculations

    1 Cash ratio = Total cash assets ÷ Current liabilities
    = 2,639 ÷ 18,573 = 0.14

    Ratio Description The company
    Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Delta Air Lines Inc.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.